We are pleased to share commentary on the 2021 federal budget. This commentary does not originate from our office. Our subscription to the commentary allows for us to distribute it to our clients. We hope you find it useful.
Some highlights include:
A. Personal Measures
- The Canada Recovery Benefit and related programs will be extended.
- Individuals will have the option to claim a deduction in respect of the repayment of a COVID-19 benefit amount for the year when the benefit was received.
- Access to the disability tax credit will be broadened.
B. Business Measures
- The Canada Emergency Wage and Rent Subsidies (CEWS and CERS) will be extended.
- The Canada Recovery Hiring Program was introduced.
- The ability to immediately expense 100% of many capital asset purchases was introduced.
- The corporate tax rate on zero-emission technology manufacturing will be halved.
- The disclosure requirements for aggressive tax planning and filing positions will be expanded.
C. International Measures
- A 1% tax on the value of vacant or underused real estate owned by non-residents will be implemented.
D. Sales and Excise Tax
- Access to the GST/HST New Housing Rebate will be broadened for co-owners.
- A new tax of up to 10% will apply to the purchase of luxury vehicles, aircrafts or boats.
E. Electronic Filing, Payments and Certification
- Some CRA communications will be undertaken electronically without the taxpayer’s authorization.
- Certain levels of payments will be required to be made electronically.
F. Previously Announced
- Intention to proceed with a number of previously announced measures, such as the accelerated CCA changes for zero-emission vehicles, and expanded disclosure requirements for trusts.